I think what you are referring to is syndication.

Points may also be treated differently between a primary residence and a rental.The $100k you are referring to is related to home equity indebtedness (home equity loan, HELOC) and that was removed with the Tax Cuts and Jobs Act.

What would be the best way to approach a motivated seller with a creative financing option (ex. owner financing or subject to)?  I

I think what your seller is alluding to is the infamous due on sale clause which is typically paragraph 17 in most mortgages/deeds of trust. 

What it boils down to is your preference and tolerance.

Whatever you know of that would be good, I'm open to.  I

I don’t want to rent the house on a per room basis and have three individual leases.How to I go about renting the house out?

Our favorite strategy we've come back to is rentals and passive investing in syndications. 

Unrelated to your post, but I’ve done this for several that were scammed by someone spoofing our company in my name, and the banks almost immediately recognized irregular activities and instantly froze the accounts.]Let me also guess, the account he wants you to wire to is not his name or the name of his company.

I have also switched to is buying commercial grade door nobs for the main door.